1. Economics Unit 1 Review

2. Questions: Something you desire but may never get Want
You decide to sleep rather than study. What is your tradeoff?
Studying
Name one country today who is a command economy.
Cuba, North Korea

3. Questions: Property owned by the individual not the government.
Private Property
Money left over after you pay for your factors of production.
Profit
What was the name of Adam Smith’s book?
Wealth of Nations

4. Questions: A job you do for someone for a fee Service
Give an example of a service
Mowing lawn
Which economic system is based on beliefs and customs?
Traditional

5. Questions: What is the difference between scarcity and shortage?
Scarcity you never get back, Shortage is temporary
You decide to play video games instead of doing your homework. What is an opportunity cost?
Getting a better grade

6. Questions: Name the five factors of production.
Land, labor, capital, entrepreneurship, technology
Bing starts her own clothing line. Gove an example of entrepreneurship.
Bing
Mac owns a farm. Give an example of land.
Farm, natural resources

7. Questions: Rahi owns a nail salon. What is a form of labor? Manicurist
Anas owns a preschool. What is a form of capital?
Toys, blankets, desks, computers, money
Dariel owns a car repair shop. Give an example of technology.
The science of repairing the cars.

8. Questions:
In a market economy people choose their career/job. We call this Freedom…
To earn a living
Who decides what is produced in a market economy?
Buyers
Name another freedom of a market economy and explain it.

9. Questions:
All the things you use to make a good or service is called a …
Resource
The process of turning the resource into a good or service…
Production
Marc owns a sheep farm. What are two production possibilities?
Meat, wool, fertilizer
What is a form of production for Marc?
Slaughtering the sheep, shearing the sheep

10. Questions:
A license to produce an invention for a certain amount of years is a…
Patent
What license do you get on written work like a song or book?
Copyright
What type of economic system do we have in the U.S. ? Explain.
Mixed economy. We are mainly a market with freedoms but there is some government interference like minimum wage.

11. Questions:
What did Adam Smith believe the government role should be in the economy?
Laissez faire-hands off. Little to no interference.
Why will sellers make what the buyers want and need?
Profit Incentive-they want to make a profit

12. Questions: List two economic questions. What and how much to produce?
How to produce it?
Who should produce it?
Who shares in what is produced?
You are a car company. Give an example of how you would answer one of the economic questions.
You might make trucks and cars. 50 cars and 30 trucks.